05 April 2013
Consider the situation 1 ) Purchase order for 2 Motor Pumps 12/11/2011 1.5 Yen/ Re. 2 ) Supplier Acknowledged...Invoice Date 26/12/2011 20000 Yen at 10000 each...1.7/ Re. 3 ) Despatch Date 27/12/2011 1.85 Yen/ Re. 4 ) First Payment Date 27/02/2011...paid 10000 Yen at 2 Yen/ Re...price of once pump...both of them still in transit... 5 ) Customs and VAT clearance 26/06/2011...2.25 Yen/ Re. 6 ) Reached Factory 30/06/2011....2.5 Yen/ Re. When should I capitalise the asset and at what values ?
I have done this..... 1 ) Capitalise both the assets on the date it reached the factory... 2 ) Value of the pump for which the price is paid before it reaches the factory is value at cash value...that is the amount paid.. 3 ) Value of the second pump for which the price is still payable is valued using the exchange rate on the date it reached the factory....
CAclubindia
